Our friends at Axios are out with a scoop that will surprise… absolutely no one.
A new peer-reviewed study confirms what was obvious to anyone following the alarming Wall Street takeover of the healthcare industry: private equity-owned hospitals rake in millions more than other hospitals.
According to the study, Wall Street-run hospitals really do charge more – $2.3 million more, on average – and have a larger cap between their costs and the prices they’re charging patients.
As we’ve well documented, the entire point of private equity is to maximize profit. And at some point, maximizing profit will almost certainly clash with better access, more affordable care, or a smoother patient experience.
In fact, it seems to have triggered some especially troubling trends – ventilator shortages, even – during the COVID-19 crisis.
And Wall Street firms are, at a dizzying rate, gobbling up more hospitals, emergency rooms, ambulance operations, physician practices, and companies insurers partner with to keep costs low.
From the Axios report:
By the numbers: Three years after their acquisition, private equity-owned hospitals were bringing in about $2.3 million per year more in income than a control group of hospitals that weren’t acquired, according to the study.
Their total charges per inpatient day were about $400 higher, on average, and they saw a bigger gap between their costs and the prices they charged.
We all knew it had to be true. The academic research finally said it out loud.